Music Now Plans to Sell 6,000 MP3 Players at $60

question 125

Essay

Music Now plans to sell 6,000 MP3 players at $60 each in the coming year. Variable cost per unit is $12 and total fixed cost is $24,000.
Required:
A.) Calculate the variable cost ratio.
B.) Calculate the contribution margin ratio.
C.) Calculate the break-even point in sales dollars.
D.) If Music Now has a target profit of $90,000, how many MP3 players will they have to sell?

---

Definitions:

ECG Paper

Specialized graph paper used in electrocardiography to record electrical activity of the heart over time.

Single-Channel Machines

Devices that are designed to process or measure one signal or data stream at a time.

ECG Machine

A medical device used to measure the electrical activity of the heart over a period of time, aiding in the diagnosis and monitoring of heart conditions.

Cardiac Cycle

The sequence of events in the heart during one heartbeat, including contractions (systole) and relaxations (diastole) of the atria and ventricles.